Bangkok: The Permanent Secretary of the Ministry of Agriculture and Cooperatives has directed affiliated agencies to closely monitor the impact of the ongoing situation in the Middle East, particularly in relation to oil prices and their effect on agricultural production costs. This directive also extends to the careful observation of agricultural exports to the Middle Eastern market, which are valued at over 70 billion baht. The Permanent Secretary assured that the government is currently capable of managing the situation.
According to Thai News Agency, Mr. Winairoj Sapsongsook, Permanent Secretary of the Ministry of Agriculture and Cooperatives, stated that due to the tense situation in the Middle East, the Ministry has tasked the Office of Agricultural Economics (OAE) with closely monitoring and evaluating the situation. A primary concern is the fluctuation in energy prices, especially oil, which significantly impacts agricultural production costs, including those of agricultural chemicals, raw materials for fertilizer production, as well as logistics and transportation costs.
The government has conducted comprehensive preparatory meetings to address the situation, including implementing measures to control fuel prices to prevent adverse effects on the public. In response, the Ministry of Agriculture and Cooperatives has established a monitoring framework focusing on three main areas:
- Evaluating the impact on Thai agricultural exports to the Middle East, which currently exceed an export value of 70 billion baht per year. Products requiring close scrutiny include rice, canned tuna, rubber products, processed foods, pet food, processed pineapples, non-alcoholic beverages, frozen chicken, and sauces, as they hold a significant market share in the region. Challenges such as shipping route problems or increased insurance costs could affect the competitiveness of Thai products.
- Monitoring the influence on agricultural production factors, particularly the prices of fertilizers and agricultural chemicals, which are linked to energy prices. The Ministry has instructed the Department of Agriculture to vigilantly oversee fertilizer stores and distributors nationwide to prevent opportunistic price hikes that could further burden farmers.
- Observing overall economic risks, including potential inflation trends that may lead to higher agricultural commodity prices, and currency fluctuations arising from conflicts that could impact international trade. The Ministry will continuously gather information and conduct in-depth assessments to develop measures to mitigate any adverse effects on farmers and the agricultural sector.
Mr. Winairoj reiterated that the Ministry is committed to closely monitoring and assessing the situation, while affirming that the government remains able to manage it. He also expressed hope for a swift resolution to the Middle Eastern conflict, as it poses risks to the broader economy and international trade.